Ryan Specialty (RYAN) - 2024 Q4 - Annual Results

Revenue Performance - Total revenue for Q4 2024 increased by 24.5% year-over-year to $663.5 million, compared to $532.9 million in the prior-year period[1] - Full year 2024 total revenue grew by 21.1% to $2,515.7 million, compared to $2,077.5 million in the prior-year[4] - Total revenue for the year ended December 31, 2024, was $2,515,710, representing a 21.1% increase compared to $2,077,549 in 2023[46] - Total revenue for Q4 2024 reached $663.5 million, a 24.6% increase from $532.9 million in Q4 2023[15] - For the year ended December 31, 2024, total revenue was $2.52 billion, up 21.1% from $2.08 billion in 2023[15] Income and Earnings - Net income for Q4 2024 decreased by 27.3% year-over-year to $42.6 million, compared to $58.5 million in the prior-year period[13] - Adjusted net income for Q4 2024 increased by 28.9% to $123.3 million, with adjusted diluted earnings per share rising to $0.45[15] - Net income for the year ended December 31, 2024, was $229,913, compared to $194,480 in 2023, resulting in a net income margin of 9.1%[46] - Net income for Q4 2024 was $42.6 million, down 27.2% from $58.5 million in Q4 2023, resulting in a net income margin of 6.4%[15] - Adjusted diluted earnings per share for the year ended December 31, 2024, was $1.79, compared to $1.38 in 2023[47] Adjusted Metrics - Adjusted EBITDAC for Q4 2024 grew by 36.2% to $216.0 million, with an adjusted EBITDAC margin of 32.6%[14] - Adjusted EBITDAC for the year ended December 31, 2024, was $811,223, an increase from $624,740 in 2023, with an adjusted EBITDAC margin of 32.2%[47] - Adjusted EBITDAC for the year ended December 31, 2024, was $811.2 million, reflecting a significant increase from prior year adjustments[68] - Adjusted net income for Q4 2024 was $123.3 million, a 29.0% increase from $95.7 million in Q4 2023, with an adjusted net income margin of 18.6%[15] Growth and Acquisitions - The company executed 7 acquisitions in 2024, adding over $265 million in annualized revenue[5] - The company initiated guidance for full year 2025 organic revenue growth rate between 11.0% – 13.0%[19] - Organic revenue growth rate for Q4 2024 was 11.0%, compared to 16.5% in the prior-year period[10] - Organic revenue growth rate (Non-GAAP) for the year ended December 31, 2024, was 12.8%, compared to 15.4% in 2023[54] Expenses and Financial Position - Total operating expenses for the year ended December 31, 2024, were $2,087,898, up from $1,718,468 in 2023[46] - Compensation and benefits expense ratio for the year ended December 31, 2024, was 63.2%, slightly down from 63.6% in 2023[46] - The company incurred acquisition-related expenses of $69,842 for the year ended December 31, 2024, compared to $23,274 in 2023[59] - Long-term debt as of December 31, 2024, was $3,231,128, an increase from $1,943,837 in 2023[50] - Cash and cash equivalents as of December 31, 2024, were $540,203, a decrease from $838,790 in 2023[50] Segment Performance - Wholesale Brokerage segment generated $1,489,077 in revenue for 2024, up 12.9% from $1,319,056 in 2023[21] - Underwriting Management revenue surged by 49.7% to $646,215 in 2024, compared to $431,579 in 2023[21] - The Binding Authority segment reported a revenue increase of 16.1%, reaching $320,379 in 2024 from $275,961 in 2023[21] Cash Flow and Assets - Total cash flows provided by operating activities for the year were $514,868, compared to $477,203 in the previous year[52] - Total assets as of December 31, 2024, were $9,649,918, compared to $7,247,209 in 2023, indicating significant growth[50] - Cash and cash equivalents held in fiduciary capacity at the end of the period were $1,756,332, slightly down from $1,767,385 in the previous year[52] Other Information - The company declared a 9.1% increase in its regular quarterly dividend to $0.12 per share[17] - The company will host a conference call to discuss these results, scheduled for 5:00 PM ET[22] - Ryan Specialty is focused on providing innovative specialty insurance solutions for brokers, agents, and carriers[24] - Forward-looking statements indicate potential growth initiatives and strategies, subject to risks and uncertainties[26]